Gold Analysis


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Gold Prices and Greece Speculation

Gold prices moved defensive but activity remains limited and prices are at the highest range this year. In general, the price of gold remained strong in the face of the dollar continues to move to the highest level in nine years.

Dollar, Euro, Pound

Once again, the strengthening of the dollar serves to weaken other currencies; particularly the euro and the British pound. The latest evidence of the function of negative interest rates has provided additional policies to policies of the ECB bond purchases in larger scale in about an all-out by Germany.

Mario Draghi is likely to claim that the purchase of government bonds aimed at meeting a target price stability indirect monetary financing of the European Union member states.

In the UK, the annual price index for December were at -1.7% thus highlighting the disinflationary pressures that make Sterling moving to 18-month lows. The era of easy money is still alive so that will help and support the gold price, even when the price of the dollar rose and global disinflation occurring throughout the State.

Greece Speculation

Gold continued to strengthen this week as traders speculate on safe-haven assets due to uncertainty in the euro zone when there is the possibility of Greece will come out of the European Union, amid the collapse of the gold price moves rally in December, creating short-term diversification from stocks to bonds.

German daily Der Spiegel reported the view of Angela Merkel that Germany would be “comfortable” with a Greek exit from the European Union and said any “any risk.” It is entirely possible that the EU will do everything in its power to accommodate the anti Observation of Syriza party in order to gain power in Greece.

Gold will protect from the risk of currency devaluation, whether in the form of the euro currency itself devalued or in the form of currency reversions to the drachma, escudos, pesetas and punts and subsequent devaluation.


On the movement Thursday, gold trading opened in the range of USD 1218.38 per troy ounce. Slightly lower gold prices to move down towards the lowest prices daily in the range of USD 1212.27 per troy ounce and finally closed in the range of USD 1211.02 per troy ounce. The movement of gold getting losses against the dollar as much as USD 7:36.

In general, the movement of gold in the 4-hourly chart looks still in bullish correction condition. Gold prices look back above the simple moving average indicator 200 and 50 which is the area of support for the movement of gold. Indicator of relative strength index (RSI 14) at the level of 59 to give an indication of the potential price in a state of minor bullish. Instead, the momentum indicator 14 provides an indication that the price will still move bearish minor.

The intraday bias, gold price movements on the 4-hourly chart looks to continue doing the correction phase and the current price looks to consolidate. If the gold price moves down the support of USD 1202.49 per troy ounce will be in touch by price movements. Conversely, if the price of gold rose against the dollar and penetrate resistance at USD 1221.31 per troy ounce then there is a chance the price will move up towards the next resistance in the range of USD 1238.13 per troy ounce.

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